Fast on the heels of a $9 million Series C round that closed in the final days of 2000, New York-based MetaMatrix is back in the venture capital market with a $25 million mezzanine offering. To date, the developer of infrastructure software for managing information across enterprises has raised $17.5 million worth of private equity.
The upcoming deal is a strategic equity financing expected to include four or five software and electronic customer relationship management (eCRM) players alongside equipment manufacturers. The mezzanine round, said MetaMatrix Chief Executive Phillipe Chambadal, will bridge the company to profitability as it moves toward the public markets with an offering slated for the fourth quarter, market conditions permitting.
Looking Back
The most recent equity infusion, — co-led by Allen & Co. Inc. and Schroder Finance Partners — coupled with the planned mezzanine financing, will double the size of the firm?s operations. Currently, its 47-strong staff is heavily weighted toward software engineers. By year-end, the company?s staff will reach 150, adding sales management, product support and business development teams to the mix. Over the next 12 months, the company plans to sign partnership agreements with eCRM providers and equipment manufacturers to boost its sales and marketing efforts. Already, MetaMatrix has deals in place IBM?s global services unit and Sun Microsystems Inc. to serve international financial services firms like ABN AMRO and Deutsche Bank with its information integration capabilities. At the same time, it will expand its satellite offices in Dallas and London and its development facility is in St. Louis.
The Series C deal also included equity commitments from Gateway Ventures, Angel Investors LP and EDB Ventures Pte. Ltd., the venture arm of Singapore?s Economic Development Board. Both Gateway Ventures and Schroder Finance Partners received board seats as part of the deal.
New York?s N2 Ventures seeded the company in a $2 million deal in September 1998. < $iNew Media Capital> also participated in the financing. A year later, the company closed a second, $7 million follow-on round of venture funding, adding Raya Ventures to its roster of investors. Sheikh Badr Al-Aiban, managing director with Raya, took a seat on the company?s board.
Carolina Braunschweig can be contacted at Story Feedback.
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